QPR lose arbitration claims against fine for breaching the EFL's FFP

[Friendsoffulham]

[Keynsham]

Well that could get interesting now.

Possibly.

[MJG]

"We dont like the rules we signed up for to play in your league and in retrospect we think its against Competition Law"

Sod off and pay up

[The Rock]

What was the fine for how much? Weren't they like 50m over budget?

[MJG]

What was the fine for how much? Weren't they like 50m over budget?

Was in region of £60M

[MJG]

Interesting that they're going to "appeal". I didn't even realise you could appeal arbitration. Hopefully they won't be allowed to appeal, otherwise, presuming the appeal goes to the law courts, this could roll on for years.

My understanding was that this was a court related case anyway. Be interesting to see who they appeal to.

[Kent Cassandra]

How much do you think this will cost them, including cost of arbitration?

[toshes mate]

Wasn't there a threat of relegation to fifth tier of EFL in addition to the £58m fine in the original judgement? 

[Sgt Fulham]

Hope they don't get hit so badly that they go down. That's an easy 6 points just gone.

[Lighthouse]

If a club are allowed to appeal after it has taken this long then it really is a charter to cheat or at best ignore the rules.

[JakeFFC]

This could get very interesting.

From a financial point of view they have no other option but to appeal. Their profits had been dwindling each year and their costs increasing.
For example
Year                                           2013-14               14/15             15/16
Revenue                                      97.5M                   112M            37.4M     
Costs                                         (92.6M)                 (113.4M)       (49.8M)       
Profit (before player sales)            4.9M                   (1.4M)            (12.4M)   
Profit after player sales                 693K                    467K              86K           

As you can see their income was drastically diminished in the 15/16 season and huge cuts were made making them work on a shoestring budget.
If you were to add a 50/60 mill fine into those figures they would be in big trouble.

So really they need to carry on their cuts and try to maximise their reserves (currently 11M from the end of last season) to do this they need time. While it may cost them going to the courts, it may save them in the long run, unless they get relegated to division 1.

The other alternative is that the club don't get the fine the 'parent' company does. This then wouldn't impact their finances except in having less input from the owner through the parent company. My knowledge of accounting for football clubs is minimal so I don't know the treatment for it just the logic.

Either way, Fulham fans can sit back and have a drink watching QPR sweat over this.  :wine: 078.gif
Maybe Mr Khan could purchase Loftus Road on the cheap and turn it into a Fulham shrine.

All figures come from companies house which are publically available: https://beta.companieshouse.gov.uk/company/00060094/filing-history
They are however just my interpretation. I am not involved in football clubs accounts so I may have made some incorrect assumptions.

[Marcel_Gecov]

Soooooooooooooooooooooo.... will QPR go bust?  049:gif

[Holders]

Interesting that they're going to "appeal". I didn't even realise you could appeal arbitration. Hopefully they won't be allowed to appeal, otherwise, presuming the appeal goes to the law courts, this could roll on for years.

My understanding was that this was a court related case anyway. Be interesting to see who they appeal to.

It was arbitration so not the same as the courts. Having been on Google since my first post, my understanding is they can now appeal to the courts but only in very limited circumstances, specifically sections 67 and 68 of the Arbitration Act 1996, which in reality I think this means they have to show the arbitration panel didn't have authority to hear the case or there was some "serious irregularity" in the arbitration process. 

Or new evidence - hardly likely. 

[Chutney]

Chances are they won't have their appeal heard and will be forced to pay, if they can't pay then the consequences will be incredible, they really are a shoddy attempt of a football club

[The Rock]

Wasn't there a threat of relegation to fifth tier of EFL in addition to the £58m fine in the original judgement?

I remember hearing just that now that you mention it, banned from the league and exactly £58m... who knows how many appeals ago that was...

[rogerpbackinMidEastUS]

There but for the grace of the dyslexic dog go us.

Cast our minds back

[bigalffc]

There but for the grace of the dyslexic dog go us.

Cast our minds back

Yes, I've no time for QPR but totally disagree with FFP. Businesses (which football clubs are) should be allowed to grow if they have an investor to provide financial backing.
If this was dyson or Sainsbury's the business world would be in uproar. Chelscum and Man City didn't grow just on the back of supporters and shirt sales.

[MJG]

There but for the grace of the dyslexic dog go us.

Cast our minds back

Yes, I've no time for QPR but totally disagree with FFP. Businesses (which football clubs are) should be allowed to grow if they have an investor to provide financial backing.
If this was dyson or Sainsbury's the business world would be in uproar. Chelscum and Man City didn't grow just on the back of supporters and shirt sales.

+1

It's supposed to stop clubs going bust (an extremely rare occurrence since money began flowing into English football in the 90s) but under the current model, the collateral damage of stifling growth far outweights that benefit.

Not to mention it still doesn't address the riskiest current issue, the huge fall in revenue when clubs are relegated from the PL.

And then there's the opacity of it as well.

from 2011 7 clubs in England have gone into administration compared to   34 in the previous decade.
Like it or not the principles of FFP that have filtered down the League's has stopped club having as many issues as previously.

[SP]

Can't take any pleasure from this but fully expect the eventual punishment to be well below the rumoured figures - although the likes of Luton will have something to say.

Presumably, the inevitable transfer embargo will mean their strikers for the next 5 years will be Mackie, Matt Smith & Cilla?

049:gif

[BedsFFC]

Harry Redknapp